TO: The Honorable Board of County Commissioners
THROUGH: John A. Titkanich, Jr., County Administrator
Michael C. Zito, Deputy County Administrator
Susan J. Prado, Deputy County Attorney
Cynthia Emerson, Community Services Director
FROM: Stacey Bush, Housing Services Manager
DATE: September 9, 2025
SUBJECT: Approval of Resolution Establishing Utility Rates for Housing Choice Voucher Program for Fiscal Year 2026
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BACKGROUND
The Housing Choice Voucher (HCV) Program, formerly known as Section 8 Housing, is a federally funded program administered locally by the Indian River County Housing Services Division. The program assists very low- and extremely low-income households by providing rental subsidies for safe, decent, and affordable housing in the private rental market. The County does not own any HCV housing units; instead, it contracts with private landlords whose properties meet HUD’s Housing Quality Standards.
Federal regulations require that utility allowance rates, covering water, sewer, gas, electric, and propane, be reviewed and approved by the Board of County Commissioners annually by resolution. These rates represent the estimated average monthly cost of tenant-paid utilities for different unit sizes and are used in calculating the total housing assistance payment for each family.
For Fiscal Year 2026, Housing Services retained The Nelrod Company to conduct a local utility rate study. The study’s methodology follows HUD guidance, using current utility provider rates and average consumption data for the County. Staff reviewed and approved the final report, and the recommended utility rates are included as an attachment to the resolution. Upon Board approval, these rates will become effective October 1, 2025.
ANALYSIS
Annual adoption of updated utility allowances ensures compliance with HUD regulations and aligns with program integrity standards by reflecting current market rates for utilities in our jurisdiction. This prevents over- or under-subsidizing participants and ensures equitable assistance across the program.
The recommended FY 2026 rates are based on the independent study conducted by The Nelrod Company, which evaluated local utility provider charges and average usage patterns. While certain utilities, such as electricity and water, have experienced rate increases due to provider adjustments and inflationary factors, others have remained stable. These changes have been incorporated into the updated allowance schedule.
Adoption of the proposed rates will maintain the County’s compliance with HUD requirements, ensure accurate subsidy calculations, and support the County’s objectives to provide affordable housing opportunities for very low- and extremely low-income residents.
BUDGETARY IMPACT
There is no direct budgetary impact associated with the approval of the utility rates. All administrative functions and program activities are supported by existing HUD grant allocations and administrative fee revenue.
PREVIOUS BOARD ACTIONS
Approval of the FY 2025 Utility Rates in August 2024.
POTENTIAL FUTURE BOARD ACTIONS
Annual review and approval of updated Utility Rates for FY 2027.
STRATEGIC PLAN ALIGNMENT
Quality of Life.
OTHER PLAN ALIGNMENT
Indian River County Housing Choice Voucher Administrative Policy.
STAFF RECOMMENDATION
Recommended Action
Staff respectfully recommends the Board of County Commissioners approve the resolution setting the Utility Rates for Fiscal Year 2026 and authorize the Chairman to execute the resolution on behalf of the Board.